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IRA Financial Blog

$300,000 in Deductions Using a DB/DC Combo Plan – Episode 423

Adam Talks

On this episode of Adam Talks, Adam Bergman ESQ, founder of IRA Financial discusses how you can receive $300k in tax credits by utilizing a DB/DC (defined benefit/defined contribution) combo plan.

On this transcript, tax attorney Adam Bergman hosts an episode of his podcast “Adam Talks” with guests Jason Grant and Tim Caldwell from Pension Investors of Orlando and Hollywood. They discuss the benefits of combo cash balance defined benefit plans, highlighting the potential for generating over $300,000 in legal tax deductions. The episode delves into the eligibility requirements and advantages of these plans for individuals concerned about tax payments and seeking to enhance their retirement savings.

Grant and Caldwell emphasize that their typical clients are profitable individuals looking to maximize tax deductions beyond what traditional 401(k) plans offer. By setting up defined benefit plans, clients can significantly increase their annual retirement savings, potentially reaching amounts like $250,000 to $300,000 or more, depending on their income levels. The experts stress the importance of customizing plans based on each client’s financial situation and long-term goals.

With Grant’s nearly 40 years of experience and Caldwell’s three-decade tenure at Pension Investors, they provide insights on the differences between 401(k) plans, defined benefit plans, and combo plans. They highlight the higher contribution limits and tax advantages of combo plans, especially for entrepreneurs, doctors, lawyers, and small business owners with consistent income. Grant and Caldwell work closely with clients to analyze their financial scenarios and tailor pension plans to suit their specific needs.

The speakers discuss various scenarios where combo plans can be beneficial, such as for sole proprietors, couples running businesses together, or individuals with side income. They address common questions about funding, employee contributions, plan termination or freezing, and the flexibility of implementing and customizing these plans. Grant and Caldwell stress the importance of working with qualified administrators like Pension Investors to ensure compliance, accurate funding, and ongoing support for clients.

They also touch upon the under-utilization of combo plans in mainstream financial strategies, attributing this to a lack of awareness and understanding among many CPAs and business owners. The guys underscore the value of expert guidance in navigating the complexities of these retirement plans and maximizing their benefits. Grant and Caldwell offer free consultations to help potential clients explore the potential tax savings and retirement wealth accumulation achievable through combo cash balance defined benefit plans.

In conclusion, this episode serves as a comprehensive guide to the advantages and intricacies of combo cash balance defined benefit plans for individuals seeking substantial tax deductions and robust retirement savings strategies. Grant, Caldwell, and Bergman advocate for proactive financial planning, emphasizing the potential for significant wealth accumulation and tax savings through strategic utilization of these specialized pension plans. Their expertise and personalized approach aim to empower clients to optimize their financial futures and make informed decisions to secure long-term financial stability.


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